Under the Direct Method of Preparing the Statement of Cash

question 120

Multiple Choice

Under the direct method of preparing the statement of cash flows,cash payments from operating activities do NOT include:

• A)payments to suppliers.
• B)payments to employees.
• C)payment of dividends.
• D)payment of interest.

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Definitions:

Performance Declines

A decrease in the efficiency, productivity, or output quality of an individual or organization over time.

Incentive Plans

Compensation strategies designed to motivate employees by linking a portion of their pay to individual or organizational performance.

Labour Costs

The total expenditure by businesses on employee compensation, including wages, salaries, and benefits.

Piecework Pay Plans

Compensation schemes where workers are paid based on the quantity of items they produce or complete, rewarding productivity and output.